NEW Mortgage Exit Fees Discussion

MarkyMarkD

frankcrox wrote: »

Been with Northern Rock for 4 years, re-mortgaged once, due again September, charging £299, should I contact them before then in case they withdraw offer?
:mad: Also charging £1995 for product fee, is this right? :mad: I am already with them and got the same product.

Need advice bad!!!

You haven't "re-mortgaged once", you've switched products once. Remortgaging involves changing lenders.

If you mean that they are asking £299 as a product review fee and £1995 as a product fee, then they can charge you whatever they like. It's up to you whether you pay it or not. If not, you stay on the product you originally agreed to stay on for 25 years or whatever the term was.

MarkyMarkD

SkylineDriver wrote: »

We re-mortgaged as we needed to free up capital in the property and Northern Rock had the best deals on (rates etc) at the time and C&G did not.

I find it very doubtful that the total cost, over the remaining tie-in period, was actually cheaper by incurring the huge ERC you did. Did you actually add up all the costs over that limited period?

It's easy to get swayed by apparent rate savings, but the total cost (over the relevant period) is what actually matters.

SkylineDriver

MarkyMarkD wrote: »

I find it very doubtful that the total cost, over the remaining tie-in period, was actually cheaper by incurring the huge ERC you did. Did you actually add up all the costs over that limited period?

It's easy to get swayed by apparent rate savings, but the total cost (over the relevant period) is what actually matters.

Or penalty fee was just over £700, we re-mortgaged as we needed to free capital, £60,000 to be exact. That is why we done it otherwise we would have just left it with C&G until the fixed rate was up but we had no choice. We had a mortgage advisor who found us the best deal and got us out of "a hole" so to speak. Getting back to my original question, would we be entitled to this exit fee back?

Noz

SkylineDriver wrote: »

Or penalty fee was just over £700, we re-mortgaged as we needed to free capital, £60,000 to be exact. That is why we done it otherwise we would have just left it with C&G until the fixed rate was up but we had no choice. We had a mortgage advisor who found us the best deal and got us out of "a hole" so to speak. Getting back to my original question, would we be entitled to this exit fee back?

I think that has already been answered. Early repayment fees are valid and not reclaimable - only Meafs, so if this £700 is an early repayment charge then it stands.

specialangel

I was in the process of moving, but it now would appear that the sale of the property I was buying will fall through as we have found it to have been underpinned. I still wish to proceed with the sale of my property which is nearly complete, however, I am tied in to a two year fixed deal until November. It is likely that I will move out in mid August, I would like to try and keep a small mortgage so that I can avoid the early redemption fee and then repay it in full when I am outside the deal conditions, however, as as the sale will have repaid my current mortgage in full, I don't know if I can do this.
My mortgage is with the Portman BS. I would be happy to stay with them, but under the circumstances, it looks like I will temporarily have to go into rented accommodation and so no longer own a property to mortgage.
Advice would be much appreciated.

Noz

specialangel wrote: »

I was in the process of moving, but it now would appear that the sale of the property I was buying will fall through as we have found it to have been underpinned. I still wish to proceed with the sale of my property which is nearly complete, however, I am tied in to a two year fixed deal until November. It is likely that I will move out in mid August, I would like to try and keep a small mortgage so that I can avoid the early redemption fee and then repay it in full when I am outside the deal conditions, however, as as the sale will have repaid my current mortgage in full, I don't know if I can do this.
My mortgage is with the Portman BS. I would be happy to stay with them, but under the circumstances, it looks like I will temporarily have to go into rented accommodation and so no longer own a property to mortgage.
Advice would be much appreciated.

Not quite sure I understand what you mean to be honest.

If your property is being sold to someone else, your mortgage on the property will be paid of so that the new owner own the property outright (first charge on the property). If someone else is going to own the property via a sale, then you have no option to keep a small mortgage open as it will be paid off entirely. If the sale completes before November, then the early repayment charge will have to be paid.

The only option is if the Portman BS agree to port your mortgage to a new property. Each lenders T&Cs are different on this. One example I can think of is if you find a new property within 3 months say and you take the new mortgage out with the same lender, they may refund the old ERC (or at least partially). As said this comes down to the individual lender though.

MarkyMarkD

SkylineDriver wrote: »

Or penalty fee was just over £700, we re-mortgaged as we needed to free capital, £60,000 to be exact. That is why we done it otherwise we would have just left it with C&G until the fixed rate was up but we had no choice. We had a mortgage advisor who found us the best deal and got us out of "a hole" so to speak. Getting back to my original question, would we be entitled to this exit fee back?

Noz has already answered the last part.

£700 is quite a low ERC so it makes your switching a little more comprehensible. I'm not sure why you suddenly needed £60,000 so soon after taking out your C&G mortgage but perhaps I shouldn't worry about it.

In most circumstances, C&G would have advanced you the additional £60,000 as a further advance, and you wouldn't have had to pay the £700 or the MEAF on the C&G mortgage, or the application fee for the new Northern Rock mortgage, etc. That's why I suggest it might have been poor advice to remortgage.

I've no doubt that your advisor did the best in the circumstances, and wasn't influenced by the £400-500 Northern Rock were going to pay him for getting you to switch to them.

plaxman40

I have been trying to rack my brains to remember how many times i have changed my mortgage and with what companies over the last 20 years, i have narrowed it down to the abbey and coventry and bank of scotland but i do not have any account numbers or paperwork they have all sent back saying they can not find any details so can not proceed with it. i can not understand this as i definately had mortgages with them. Any ideas of what can i do next?:rolleyes:

candygirl

I have had my mortage with the Halifax(crazy i know) since 1986, and in that time have only added to it in 2003, then changed to a repayment only mortgage last year when i cashed in my endowment.Am I likely to be up for any refunds.I have tried to read through some of the posts on here, but am still not sure if i will be eligible for a refund.

Noz

candygirl wrote: »

I have had my mortage with the Halifax(crazy i know) since 1986, and in that time have only added to it in 2003, then changed to a repayment only mortgage last year when i cashed in my endowment.Am I likely to be up for any refunds.I have tried to read through some of the posts on here, but am still not sure if i will be eligible for a refund.

Doesn't sound like it if I'm reading it right. The mortgage itself is still open? If so MEAFs are typically charged if your redeem the mortgage before the end of the mortgage term so I can't see there being anything owing to you.